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So my DW and I have been blessed with twins, just a few weeks ago.

I'm thinking about starting 529 accounts for the kids. We live in Texas, with no state income tax, so we might as well pick and choose among the 529 plans of the various 50 states, and it looks like Utah's UESP is the best option from where I stand.

It looks like we can squirrel away up to 24,000 a year, or up to 120,000 in any 5 year period, up to a total maximum of 330,000, per child. Am I reading this correctly?

We're in the fortunate situation that we actually could ( well it would be a stretch, but we *could*) manage to put away 2000 per month (24k per year) per child, although probably half, or even one quarter of that, seems more reasonable to me. Our retirement contributions are already maxed, FWIW.

Given the significant tax disadvantages of having unused leftover money in a 529, what's a *reasonable* target contribution for these kids? It seems to me that making the maximum contribution is likely overkill, and could very well result in unused money.

There are many sketchy assumptions involved in the calculations:
Future rate of return (heck if I know!)
Future rate of increase in college costs (heck if I know!)
The educational accomplishments of my children ( I would hope they both go to 4 year universities and then follow that with graduate or professional school, but you never know...)
Whether the kids go to an in-state public university, or not. (they could do a whole lot worse than UT Austin, or Texas A&M, but I won't rule out private schools.)

What do y'all think?
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Here's a link to the web site of a consumer advocate who agrees with your choice. You will find good information there.

You can also find lots of good information at

With the kind of $$ you are considering, I would be cautious about the possibility of over funding...

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